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Student Name | | Course and Section Number | Program of Study | FIN 1103 | |

FIN 1103
Week 7 Individual Work

Deciding to Buy a Car and Renting Versus Buying a Home

Assignment Instructions | To complete this assignment: 1. Answer all of the questions below in the space provided. 2. Reflect on the information presented in this week’s lesson and provide an insightful response to each question writing no more than two paragraphs. | Save and Submit to Dropbox | 1. Save your work as a Microsoft Word 2010 (.docx) file that includes your name, course code, and title in the file name. For example: JaneSmith_FIN1103_Week7.docx. 2. To submit your assignment, go to the Dropbox and click "Submit Assignment." 3. Click on the drop-down menu to select the Week 7: Individual Work basket in the Dropbox. |

Objective: Compare financial alternatives for major purchases
Locate the Financial Planning Case on page 243 of your textbook and complete Case 1.

Locate the Do the Math on page 280 of your textbook and complete number 3. Financial Planning Case 1: The Johnsons Decide to Buy a Car | After three years of riding a bus to work, Belinda finds that she can no longer do so because her employer moved to a location that is not convenient for public transportation. Thus the Johnsons are in the market for another car. Harry and Belinda estimate that they could afford to spend about $10,000 on a good used car by making a down payment of $2,000 and financing the remainder over 24 months at $355 per month. | a. Make suggestions about how the $355 might be integrated into the Johnsons’ budget (Table 3-5 on page 86) by making reductions in certain expense categories. | | b. If they cannot make room in their budget for a $355 monthly car payment, would you recommend they finance a vehicle for 36 or 48 months? Why or why not? | |…...

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